The Premium on a Euro Call Option Is

Multiple Choice

The premium on a euro call option is $.02. The exercise price is $1.32. The break-even point is ____ for the buyer of the call, and ____ for the seller of the call. (Assume zero transactions costs and that the buyer and seller of the put option are speculators.)

A) $1.30; $1.30
B) $1.34; $1.30
C) $1.30; $1.34
D) $1.34; $1.34